Overview

On the 1st of July 2022, the super guarantee (SG) rate increased from 10% to 10.5% and will progressively increase to 12% by July 2025. The SG rate you are required to apply depends on when you pay the employee as opposed to when they earn the income.

The increased SG rate will subsequently need application to any pay runs with a date paid on or after the 1st of July, even if some or all of the relevant pay period is before 1st of July. This article will clarify the system settings that the platform automatically manages at the commencement of each financial year and specify what exceptions apply that prevent the SG rate from increasing automatically and requiring manual user intervention.

Availability

Details

The configuration of the following payroll settings will determine whether the platform will automatically manage your SG rate increases:

• Did you select the Automatically Update Super Rates checkbox on your Business Details page?
• Did you add data to the Super Rate field on the Pay Category settings page?
• Did you select the Override checkbox in the Super Rate column on your pay templates.?
• Did you select the Override checkbox in the Super Rate column on your employee pay rates?

If any of the scenarios detailed below apply to your business and/or employee records and you want the payroll platform to update automatically the SG rate, you must correct your settings accordingly the earlier of:

• 5pm (1700) Australian Eastern Standard Time on 30 June of the current financial year, or
• The day of the first pay run that is due to be processed with a date paid in the new financial year, and changes need to be made prior to creating the pay run.

Automatically Update Super Rates checkbox

This is the foremost factor that determines whether the SG rates will automatically update. You can access this checkbox on your Business Details page. To read further information on how to access this page, refer to the following article.

This checkbox setting will have a tick by default and we will only untick it for a business because of a manual override. When the checkbox has a tick, the system will start reviewing what it can update within the SG rates, depending on the configuration of the settings below. It will then update accordingly.

Pay Category Super Rate field

Once you have selected the Update Super Rates checkbox, the next setting the system to review is the super configuration of each of your pay categories. We have listed some tips below on what you will need to review:

• Each of your pay categories in the Pay Categories module has a Super Rate field.
• If the value in that field is 0% or anything different to the applicable SG rate for the current financial year, the system will not update the super rate for that pay category.
• An example of anything different for transitioning from the 21/22 FY to 22/23 FY would be if a pay category has a super rate value of 8%:
  • As this rate is not the applicable minimum SG rate for the 21/22 FY, the system will not update the super rate to the applicable minimum SG rate for the 22/23 FY.
  • Rather, the super rate will remain at 8%. Another example would be when transitioning from the 21/22 FY to 22/23 FY, if a pay category has a super rate value of 12%.
  • As this rate is not the applicable minimum SG rate for the 21/22 FY, the system will not change the super rate for the 22/23 FY and instead the super rate will remain at 12%
• Alternatively, when the value in the Super Rate field is identical to the applicable SG rate for the current financial year, the system will update the super rate for that pay category. For example:
  • When transitioning from the 21/22 FY to 22/23 FY, an automatic update to 10.5% applies to any pay category that has a super rate of 10% for the 22/23 FY
• You can do a bulk audit of the super rate configuration of all business pay categories by exporting the pay category settings. To do this, first download your Pay Category data, and then open the file and review the DefaultSuperRate column.
• To update any pay category setting, click on the relevant Pay category from the Pay Categories screen, override the super rate value and click the Save button. To read further information on this feature, refer to the following article.

Super Rate Override Checkbox Pay Rate Templates

Once you have selected the Update Super Rates checkbox, the next setting to review will be the Super Rate fields of any pay rate templates that your business created as opposed to the pay rate templates linked to pre-packaged awards. If any of the following apply, the system will not update the super rate associated with the pay category in the pay rate template:

• You have overridden the Super Rate field, i.e. you ticked the Override checkbox.
• The value in the Super Rate field is 0%.
• The value in the Super Rate fields is anything different to the applicable SG rate for the current financial year.

To know whether your business has its own pay rate templates, select the Your Pay Rates Template option on the Pay Template page. To read further information on this feature, refer to the following article. If you have employees linked to the templates, we will show this on your screen as well.

If there are no pay rate templates listed, you can proceed with reviewing the next setting. If there are templates listed tough, you can do a bulk audit of the super rate configuration of all business pay rate templates by exporting the pay rate template data.

To do this, first download your Pay Template data, and then open the file and navigate to each xx_SuperRate column in the export. If any values need updating, override the existing values and then re-import the file.

Super Rate Override Checkbox Employee Pay Rates screen

Once you have selected the Update Super Rates checkbox, the final setting to review to determine whether automatic updates will apply is the Super Rate fields associated with all pay categories and listed on the employee's Pay Rates screen.

• You have overridden the Super Rate field, i.e. you ticked the Override checkbox.
• The value in the Super Rate field is 0%.
• The value in the Super Rate fields is anything different to the applicable SG rate for the current financial year.

Further information